Key Highlights:
- €3 Billion in Loans: The European Investment Bank (EIB) Group has announced €3 billion in loans for agriculture, forestry, and fisheries across Europe, aimed at supporting young farmers, women in agriculture, and green investments. The funding will unlock an additional €8.4 billion in investments when matched by other financial institutions.
- Support for SMEs and Mid-Caps: The financing will focus on small and medium-sized enterprises (SMEs) and mid-cap companies over the next three years, with initial loans expected in the first half of 2025.
- Focus Areas: The initiative targets soil health, digital tools, water management, climate resilience, and sustainable farming practices.
- New Agricultural Insurance Models: EIB Group is collaborating with the European Commission to explore new de-risking schemes and insurance solutions for extreme weather events.
Supporting Young Farmers and Gender Equality
A portion of the loans will be allocated to young and new farmers, addressing challenges in accessing traditional bank financing. Female farmers will also benefit from targeted support to address gender imbalances in the sector.
Christophe Hansen, EU Commissioner for Agriculture and Food, emphasized the importance of bridging the financing gap: “We are giving agriculture the tools to thrive and grow. Together, we’re securing a sustainable future for the sector.”
EIB Group President Nadia Calviño noted: “Farming is a vibrant part of European life. This financing will help support a new generation of farmers, including more women, while fostering sustainability and resilience in the sector.”
New Tools and Collaborative Approaches
- Green Gateway Programme: Offers advisory support to ensure favourable loan terms and assess the climate impact of green investments.
- Enhanced Insurance Measures: The EIB Group, in partnership with the European Commission, is exploring ways to strengthen agricultural insurance against extreme weather, including pan-European measures to improve climate adaptation.
- Venture Debt and Equity Programmes: New funding avenues for agritech and foodtech companies developing sustainable technologies and ecosystem services.
EIB Vice-President Gelsomina Vigliotti highlighted the broader goals: “We aim to meet agriculture’s triple challenge of producing affordable food, protecting livelihoods, and preserving natural resources.”
Strategic Dialogue and Broader Initiatives
The financing is part of the EIB Group’s action plan under the “Strategic Dialogue on the Future of EU Agriculture,” initiated by European Commission President Ursula von der Leyen in January 2024. The Dialogue seeks to shape a shared vision for the future of EU farming and food systems.
Additional measures in the EIB Group’s plan include:
- Guarantee Schemes: Leveraging the European Agricultural Fund for Rural Development (EAFRD) and national resources under the Common Agricultural Policy.
- Infrastructure Support: Investments in rural road networks, water management, and education.
- Broadened Lending Scope: Expanded support to cooperatives, irrigation communities, and forestry maintenance associations.
The EIB Group aims to maximize public investment sources while leveraging private capital to support the agricultural sector’s sustainability and innovation.
